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2017-03-30 11:10:01 CEST 2017-03-30 11:10:01 CEST REGULATED INFORMATION Componenta - Financial Statement ReleaseCorrection: The net sales and operating profit of continued operations declined. The progress of the corporate restructuring process in Finland and Sweden will enable to restore profitability and future development.Componenta Corporation Financial Statements Release on 30.3.2017 at 12.10 The corrected parts of the Financial Statements Release of Componenta Corporation published on 30.3.2017 at 9.45: The previously published Financial Statements Release included one extra figure in the following bullet point. This extra figure has now been removed and the bullet point shall read as follows: • Adjusted EBITDA of continued operations declined from the previous year, standing at MEUR 3.1 (MEUR 8.3). EBITDA including items affecting comparability was MEUR -16.1 (MEUR 3.9). Also one sentence was missing from the below bullet point. The sentence in question has now been added to the below bullet point and also to the Financial Statements Release enclosed herein as an attachment. • The order book of continued operations at the beginning of January was 2.0% down on the previous year, at MEUR 30.8 (MEUR 31.4). Comparable order book that corresponds current continued operations, was EUR 29 million and comparable order book increased by 6%. January - December 2016 in brief
October - December 2016 in brief, continued operations
Dividend proposal On 31 December 2016 the distributable equity of the parent company was negative EUR -138.9 (58.1) million, so it is not possible to pay a dividend. Furthermore, the Restructuring of Enterprises Act forbids the payment of dividends to shareholders during restructuring proceedings. Componenta’s guidance for 2017 Because of the Company’s financial situation and the restructuring proceedings and structural reorganisation in progress, giving earnings guidance has been exceptionally difficult. Because of this Componenta has not given forecasts for its financial performance when commenting on prospects during 2016. As the result of progress in the restructuring proceedings and more stable liquidity in the business operations that are continuing, Componenta is starting again to disclose guidance for its result. The majority of the net sales comprises manufacturing of components to heavy trucks and machine building industries. In these segments European market looks stable for the current year. Componenta has remarkably decreased comparable fixed costs and improved productivity in continued operations. Componenta believes that the corporate restructuring proceedings will proceed favourable and expects the net sales of continued operations to be EUR 150-170 million in 2017. The EBITDA without items affecting comparability is expected to be EUR 5-10 million. In 2016 Componenta’s comparable net sales that correspond to continued operations in 2017 was around EUR 167 million. President and CEO Harri Suutari comments on the review period and events after the end of period ”Componenta Group’s result in 2016 was extremely weak, mainly due to the tight liquidity that continued throughout the first part of the year and ultimately in September resulted in Group companies filing for corporate restructuring in Finland and Sweden and in the Dutch subsidiary being declared bankrupt. The difficulties related to liquidity had begun earlier and they hampered production, customer deliveries and new orders up until the filing for restructuring. Progress in the restructuring proceedings towards the end of the year still did not stimulate new sales, although the financing to cover working capital requirements previously agreed with major customers in Finland and Sweden significantly stabilised Componenta’s production and deliveries and secured the liquidity during the final quarter. Strategic reviews of business operations have been carried out throughout the year at Componenta, resulting in corporate reorganisation aimed at focusing on core business. Several changes were implemented by the deadlines set; the largest of these were the sale of the Suomivalimo foundry in Iisalmi and of the Pistons production unit in Pietarsaari. However the proceeds from these divestments were very limited. The sale of the foundry and machine shop operations in Turkey, announced late last year, is still in process. The sale of the Swedish forging operations did not ended to acceptable industrial solution – instead, due to Wirsbo’s restructuring decision and the strong commitment of the customers, efforts will be made to keep them part of the Componenta Group. The sale of the Turkish subsidiary has been prepared by the main local lenders, i.e. the club loan banks. In practice the banks have acted to realize the shares without conducting the normal discussions with the owner of the shares. Therefore we consider that we have lost control in the Turkish subsidiary, and the Turkish company is not being consolidated in the Group’s consolidated balance sheet in the 2016 financial statements. Successful completion of the corporate restructuring proceedings is essential for building the future. At the end of the year the local district courts approved the restructuring proposals for Componenta Wirsbo AB and Componenta Arvika AB. A second three month extension until the beginning of June was granted for drafting the restructuring proposal for Componenta Främmestad AB, because reaching an agreement between Componenta Främmestad AB and Componenta Dökümcülük Ticaret ve Sanayi A.S. relating to extended payment terms of receivable of Componenta Dökümcülük Ticaret ve Sanayi A.S, is seen as a prerequisite for a viable composition proposal. In Finland the draft restructuring programs for Componenta Corporation and Componenta Finland Oy were submitted to the local district court on 30 March 2017. The 2016 financial statements of Componenta Group and the parent company have been drawn up on the basis of a going concern. There is still uncertainty concerning the success of the restructuring proceedings and going concern.” Key Figures
Helsinki, 30 March 2017 COMPONENTA CORPORATION
Harri Suutari President and CEO
ENCL. Financial Statements Bulletin 1 January - 31 December 2016
For further information, please contact:
Harri Suutari
Marko Karppinen Componenta is an international technology company. Componenta specializes in supplying cast and machined components and total solutions made of them to its global customers, who are manufacturers of vehicles, machines and equipment. The company’s share is listed on Nasdaq Helsinki. |
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